Sohu has identified the acquisition of PPTV, the price of 5.6 billion U.S. dollars

Summary: The sky flies the sale of Sohu's purchase rumor finally has a fall ground. Pingwest received the news is: Sohu has confirmed the acquisition of PPLive, the price of 5.6 billion U.S. dollars. At present, PPLive's board and major shareholders have agreed to the merger. Expected deal will be next 1

The sky flies the sale of Sohu sell buy rumor finally have a ground. Pingwest received the news is: Sohu has confirmed the acquisition of PPLive, the price of 5.6 billion U.S. dollars.

At present, PPLive's board and major shareholders have agreed to the merger. The transaction is expected to be announced within the next 1-2 months. This is also basically consistent with previous rumors--except for the price. Archie Art and PPS 380 million dollar marriage obviously elevated the price of Sohu acquisition, but there is no way, relative to the Thunderbolt, PPLive is obviously better choice, and Sohu video can not afford to wait, if not shot, in the competition more and more deep in the Sohu video, will only watch their own marginalization.

and Archie Art acquisition pps similar, Sohu acquisition pplive value is also the other side on the client's advantage and advertising share.

According to the data provided by PPLive, its mobile client total installation volume of more than 140 million, mobile terminal traffic accounted for the total flow of 30%, and according to the report, PPLive weekly coverage of 14.3666 million users, ranked industry first. So in the scramble for the most intense mobile end, PPLive's user advantage is very obvious, and according to CEO Tao, the number of these users has begun to turn into revenue. In an interview with Sina Technology, he revealed that at present the mobile end of the price is 3-5 times the PC side, the estimated mobile revenue this year can achieve 100 million yuan. A handheld user advantage and a clear profit prospects of the end of the video company, Sohu Video is a best complement.

Moreover, Sohu video itself is still in applause not draw the case, the introduction of a series of long video despite a good reputation, but advertising revenue is too weak, there are reports that last year, Sohu video advertising revenue only about 370 million yuan, only about 30% of Archie Arts. And PPLive now on the book has been profitable, there are 70% of the revenue from advertising, profitability is also stronger than PPS, so the price of Sohu to win PPLive, is not wronged.

For PPLive, selling is already the only way out. Although Tao has repeatedly stressed that it has reached a break-even point, there is no problem with individual development, but the fact is that Pingwest recently received the news that Before pplive in early 2011 from the hands of soft silver in the last round of 250 million dollars has been almost spent, unable to continue to support operations, so despite the original soft silver stake in the valuation of pplive as high as 700 million U.S. dollars, also had to recognize the loss of trading.

After the merger was finalized, the pattern of the video industry finally confirmed the basic pattern through large-scale mergers and acquisitions: Youku potatoes, Archie +pps, Sohu +pptv, and Tencent video. The original advantage of the merger of the advantages has been inadequate integration and many mergers and acquisitions under the impact of the disappeared. and other such as Cool 6, 56 network video sites, either have already quit the battlefield, or rely on UGC to stuck corner, it is difficult to rise again.

For the stake and the acquisition of a closely related 360, Sogou case, although not long ago, Zhang said Sohu group has 1 billion U.S. dollars in cash, do not need for video investment to sell Sogou, but with Sohu video acquisition pplive, perhaps Wang Xiaoquan will soon have a clear message- Pingwest knows some news, but now is not certain, we only report the real news.